Sebi action likely on AMCs that missed March 12 crossholding deadline

Companies that have failed to comply with the Securities and Exchange Board of India’s (Sebi’s) 10 per cent cross-shareholding norm for asset management companies (AMCs) may  now face the consequences. Sources said the market regulator might issue strictures against the firms as well as principal shareholders who have missed the March 12 deadline for reducing the stake to 10 per cent.

Under the cross-shareholding norms, a single entity cannot hold more than 10 per cent in more than one AMC. The rules are to prevent potential conflict of interest and strengthen the governance structure of mutual funds. 

UTI AMC is